In 2010-11 the initial recurring baseline formula allocation for NHS Tayside was £592.9 million. As usually occurs, some recurrent adjustments were required to be made to this baseline allocation throughout the year.

The most notable adjustment in 2010-11 was that the initial allocation for 2010-11 included funding for cost of capital. This was subsequently stripped out, as per HM Treasury guidance, boards no longer have to factor in a cost of capital charge (therefore there is no impact on boards not getting funding cover for this area). This decreased boards’ allocation by £12 million and when factoring in some other less significant adjustments, the restated baseline allocation totalled £580.9 million. When using the restated baseline allocation of £580.9 in 2010-11, the uplift is close to 3%.